NCRA's stockholders' equity turned negative (-$441K from +$4.2M) while total liabilities exploded 1,094% to $7.9M, indicating severe financial distress despite increased cash holdings.
The company is technically insolvent with negative equity and deteriorating operations across all key metrics including declining revenue, widening losses, and negative cash flow from operations. The massive liability increase combined with negative equity suggests potential liquidity issues or significant new obligations that weren't properly disclosed in the narrative changes.
While cash increased dramatically to $8.0M (likely from financing), this was more than offset by an explosive $7.2M increase in liabilities that drove stockholders' equity deeply negative. Operating performance deteriorated across the board with revenue declining 20%, gross profit falling 48%, and operating cash flow worsening to -$2.6M. The financial picture reveals a company in severe distress despite the cash infusion, with the liability surge creating insolvency that poses immediate risks to shareholders.
Cash position surged 1542.5% — strong cash generation or capital raise providing significant financial cushion.
Liabilities grew 1094.1% — significant increase in debt or obligations, assess impact on financial flexibility.
Current assets grew 545.8% — improving short-term liquidity or inventory/receivables build.
Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.
Asset base grew 107.1% — expansion through organic growth, acquisitions, or capital deployment.
Operating cash flow fell 64.2% — earnings quality concerns; investigate working capital changes and non-cash items.
Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.
Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.
Net income declined 22.3% — review whether driven by operations, interest costs, or non-recurring items.
Revenue softened 19.9% — monitor whether this is cyclical or structural.
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